Background of the Incident
On December 27, 2025, the Flow network suffered a major protocol-level vulnerability that led to a large-scale unauthorized minting of FLOW tokens. Immediately after the incident, Huobi HTX initiated emergency protocols, reaching out to the project team to verify the situation and cooperating with on-chain tracking and risk containment measures.
Platform Response
Huobi HTX's risk control system continuously monitored suspicious transactions and froze assets linked to the exploit, aiming to minimize market disruption and protect user interests.
Controversy Over Unilateral Action
Despite these efforts, the Flow team proceeded with an 'Isolated Recovery' mechanism without prior consultation with exchanges or users, leveraging protocol-level permissions to forcibly transfer FLOW tokens from centralized exchange addresses, including Huobi HTX, with plans to burn them on January 30, 2026.
Impact on Legitimate Holders
Huobi HTX stressed that the affected assets include substantial holdings acquired by regular users through legitimate market activity. This unilateral decision not only undermines user rights but also sets a dangerous precedent for asset security in the blockchain industry.
Call for Responsible Resolution
Huobi HTX urged the Flow team to uphold the principles of decentralization, clearly distinguish between illicit and legitimate assets, publish a full and auditable post-mortem report, and seek resolution through open dialogue rather than unilateral technical enforcement.